Anhui Koushi Liquor Co., Ltd. (Koushi Cellar) reported a significant decline in both operating income and net profit for the third quarter of this year, with the net profit attributable to the parent company dropping by 92.55% compared to the same period last year. This makes it the mainland Chinese liquor company with the largest decline in the third quarter financial report season this year.
According to the “2025 Third Quarter Report” released by Koushi Cellar on October 28th, the company’s operating income for the third quarter was 643 million yuan, a decrease of 46.23% year-on-year, while the net profit attributable to the parent company was only 26.9651 million yuan, a decrease of 92.55% year-on-year. This marks the worst quarterly report ever submitted by Koushi Cellar, becoming the liquor stock with the most severe decline in this round of financial reporting season. Additionally, Koushi Cellar’s cash flow performance has turned negative for the first time in 10 years, with operating cash flow net outflow reaching 390 million yuan.
In detail, in the first three quarters, Koushi Cellar’s core business – high-end liquor – achieved revenue of 2.961 billion yuan, a substantial decrease of 27.98% year-on-year. High-end liquor is Koushi Cellar’s main business, accounting for about 95% of the annual revenue, which has become a core factor dragging down the overall revenue. The revenue of mid-range products was 413.047 million yuan, a decrease of 15.38%, while the revenue of low-end products was 1.13 billion yuan, an increase of 25.09%.
Looking at the inventory and contract liabilities that affect the company’s future performance this year, as of the end of the third quarter, Koushi Cellar’s inventory was 6.218 billion yuan, slightly higher than the 5.854 billion yuan at the end of 2024, indicating an increase in inventory. At the same time, the contract liabilities were 339 million yuan, a decrease of over 200 million yuan from the 559 million yuan at the end of 2024, reaching the lowest point in the past five years. This suggests that dealers are not actively stocking goods, leading to a reduction in payments.
In response to the performance changes, Koushi Cellar stated in the announcement that the decline in revenue is due to weak consumer demand in the liquor market, resulting in a decrease in revenue from high-end products. Especially affected by factors such as sluggish consumption, the decline in operating income was greater, average selling prices slightly decreased, leading to a decrease in gross profit margin and net profit. The decrease in demand, slow sales turnover, and high inventory have become the industry norm.
Beijing Lingdong Xincheng Information Technology Co., Ltd.’s “Titan Media” stated on October 29 that Koushi Cellar has lost ground in product lines from high-end to mid-range, both in the provincial and non-provincial markets, revealing a systemic crisis that has plunged the company into an unprecedented “darkest hour.”
Chinese food industry analyst Zhu Danpeng pointed out that Koushi Cellar’s grand business model is a typical sign of extensive operation for companies, which has many drawbacks. Although minimal management coordination is only required at the top level, from the perspective of market penetration and precise operation, it is difficult to drive sustainable growth for the company.
Liquor industry analyst Cai Xuefei told “Blue Whale News” under Interface · Finance and Economics that Koushi Cellar’s poor performance in a single quarter is a reflection of the dilemma faced by regional liquor companies under the industry adjustment cycle. Since the beginning of this year, the consumption market has been weak, with insufficient overall demand, putting pressure on the liquor industry as a whole.
Public records show that Anhui Koushi Liquor Co., Ltd. (abbreviated as “Koushi Cellar”) was established on December 26, 2002, and was listed on the Shanghai Stock Exchange in June 2015. The company’s main business is the production of semi-aromatic liquor, with brands like Koushi Cellar and Koushi Fang.
As of the closing price on October 29, Koushi Cellar’s stock was trading at 32.26 yuan per share, a decrease of 1.25%.